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CHAPTER 15 • To sell, buy, own, and lease property by any means necessary, including the power of eminent domain. • To cooperate with and use state and federal financial assistance programs. • To develop rehabilitation and code enforcement techniques. • To issue bonds for any of its corporate purposes backed by the pledge of revenues, grants or other contributions. • To implement renewal or redevelopment programs using tax increment financing. • To own, hold, improve, lease, sell or dispose of real or personal property. • To designate substandard, slum or deteriorating areas needing redevelopment, and unsafe, unsanitary, and overcrowded housing. • To make necessary expenditures to carry out the purposes of the HRA law. • To develop and administer an interest reduction program to assistthe financing of the construction, rehabilitation, or purchase of low- or moderate-income housing. 5. HRA special assessment and levy authority HRA power to levy and collect taxes or special assessments is limited to the ~~1~,~,~. star. ~ asa.~o 1 -~bs.o4~. power provided in state law. Subject to a resolution of consent from the city ~;n~. sit. 4 as~i_1i~3> ~t~b~ Ft. council an HRA may levy a tax upon all taxable property within the city. (The council may give a consent that covers a series of years if they so ~1;,,,,. Star. 4 2?~.?c~ t« 2;s.;~a. choose or council may pass a resolution authorizing an HRA levy for a set amount of time, for example, the entire term of the bonds secured in part by :v1iT,,,. star. § 2?.t~vv, an HRA levy and in part by a city levy.) State law recognizes the distinct nature of HRAs and designates them as "special taxing districts." The maximum general allowable operational levy of HRAs is 0.0185 percent of the previous year's taxable market value of all property in the city. The city's total taxable market value is available from the county assessor. An HRA raises its own levy because it is a separate political subdivision and not a "local governmental unit." Therefore, an HRA levy is not subject to levy limits but is subject to the 0.0185 percent market value limit. Levies collected by an HRA must be used only for purposes listed in the HRA Act. There is crossover between HRA and EDA levies that can be confusing. Typically, EDAs are not authorized to levy taxes under state law. However, ~~:i1rr. star. ; ~i~s.u~;~. many city EDA-enabling resolutions adopt all the powers of an HRA, and Minn. star. 4 2 ~ s.o~6. then the EDA functions as a special taxing district under state law. If the enabling resolution so allows, the EDA levies a separate tax or "HRA levy" not subject to levy limits or city debt limits-but again subject to the 0.0185 percent of total city market value limit in state law. The city attorney may verify the structure and levy authority of each city's HRA and/or EDA. HANDBOOKFORMINNESOTA CTTIHS 15:7 This chapter last revised 12/2010